07/28/14: Amazon still spend $100 million on originals, despite $126 million loss, Google acquires Twitch for $1 billion, Jerry Seinfeld confirms ‘Seinfeld’ heading to Netflix



CYNOPSISDIGITAL
07.28.14

Good morning. It’s Monday, July 28, 2014, and this is your first early morning digital briefing.

NEW PROGRAMMING + DEALS

 
Despite its $126 million reported loss, Amazon still plans to spend more than $100 million on pilots for original digital series by the end of the year. Amazon CFO Tom Szkutak said the company is seeing more of its Prime members using the service for streaming content, and that’s why they will continue to heavily invest in programming. Currently, the tech giant has greenlit pilots Hysteria, Really, Hand of God and The Cosmopolitans into series. CNET points out that Netflix spent $100 million alone on House of Cards two seasons. Additionally, Amazon launched a free “snackable” video site last week called Video Shorts. The vids will include movie trailers, actor and book author interviews, music videos and more as a way to boost sales.
 
After many months of speculation, Google finally took the plunge and bought videogame broadcast network Twitch for $1 billion, according to VentureBeat. As previously reported, YouTube recently introduced the Twitch Live Annotations button on gaming vids for users to go into a live play.
 
Jerry Seinfeld is in talks with Netflix to bring the Seinfeld series to the streaming service, the comedian confirmed in a Reddit Ask Me Anything online chat on Friday. Seinfeld is currently syndicated on TBS, and select eps are available on Crackle.
 
Lucy Hale
, best known for her role as Aria Montgomery in Pretty Little Liars, debuted the four-episode web series The Road Between with Lucy Hale on CMT’s site. The show features the actress in her hometown of Memphis, Tenn., as she makes her music video for the single Lie A Little Better. The first ep is available now; the remaining three will be released on July 30, Aug. 1 and Aug. 6.
 
No bingeing: Community fans will fed a slow and steady diet of the revived sitcom on Yahoo. It was announced at Comic-Con that the show’s 13 season six eps will roll out weekly on the site, sometime after Christmas 2014.
 
Cast your vote in Cynopsis’ Walking Dead poll: Will the people of Terminus be revealed as cannibals? Tell us what you think here.
 


A CYNOPSIS MESSAGE


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HAPPY NEWS FROM OUR READERS!
 

Francisco Arellano, a reality show producer at Cinemat Inc. and Horseshoe Entertainment, will celebrate his daughter’s first birthday on September 19. Arellano said, “She’s the light of our lives and the reason to be best I can be.”
 
If you’ve got happy news, weddings, babies, engagements you’d like shared with your industry colleagues for a new feature going up soon on our web site, send to [email protected].
 
Did you miss anything from last week’s media news? Go to In Case You Missed It and you’ll be up to date in no time.

 
5 MINUTES WITH…
 

The Cynopsis Digital Video Forum in San Francisco is fast approaching, and to gear up for the August 6 event we’ve been sitting down with speakers for one-on-one conversations. Rob Gabel is the founder and CEO of Tubular Labs, and will participate on The Eyeballs: Media, Marketing and Measurement panel. Make sure to register here.
 
If you controlled the top results for a Google search on “the best digital video today,” what would we see?
I would highlight the content with large passionate audiences that are currently underserved by cable TV. You won’t find much content on hairstyles, card tricks, a cappella music, dominos, anime, and lacrosse TV, but in digital, devoted communities support all these interests.
 
What do you think brands/networks are getting right when it comes to social media and video?
There are several that are participating in these enthusiastic online communities, publishing video on a regular basis and supporting creators and communities relevant to their brand. Adidas was not only a World Cup sponsor, but also supplied KickTV and other small soccer-oriented publishers with great content. Dreamworks is doing exciting things with AwesomenessTV. HGTV and Game Show Network have quietly created new brands entirely from scratch, such as HGTV Handmade and Door3Official, that are resonating with millennials. These brands realize that building large, engaged audiences take time but the reward is the scarcest commodity available – genuine attention and engagement on a week-in, week-out basis.
 
What’s keeping digital video advertising from drawing the same numbers as TV advertising?
The biggest problem I see is that content on TV is pre-funded. With subscription fees and lead-in audiences, TV networks know – roughly – the minimum revenue to expect once they greenlight a show. Online programming is usually ad-supported with few guarantees. That’s changing; Netflix, for example, has visibility into their future revenues and can invest in content with that knowledge.
 
Is it really all about the views? Why do you think our industry is obsessed with that metric more than any other?
The industry likes to focus on the biggest numbers. Views are almost always larger than social shares or engagements. But views can be bought, which makes them hollow impressions. It’s much harder to buy genuine engagement on a regular basis. Going forward, success will be determined more by recurring audience size and social sharing, as it grows and adapts.
 
What industry innovator would you love to take a selfie with?
Reed Hastings [CEO of] Netflix. From being the first to bet heavily on digital content licensing to device apps to binge viewing, Netflix has pioneered the changing face of TV more than anyone.
 

 
EXEC MOVES

 
Young Hollywood
appointed Jason Silva as Vice President, Brand Partnerships. Prior, he oversaw marketing solutions and ad partnerships for NUVOtv.
 
AdMarketplace
announced that John Tolson will join the sales and services team as Executive Director of Client Relations and Development. Tolson was most recently the Managing Director and Senior Partner at GoupM.


A CYNOPSIS MESSAGE


The Best in Online Video Content & Advertising

CYNOPSIS DIGITAL MODEL D AWARDS

Entry Deadline: August 8th
Late Submissions: August 15th
Awards Event: November, 13 2014 (Grant Hyatt, NYC)

Click here to learn about the Awards program & enter online!

Questions? Contact Pete Romas at 203-899-8483


 
 
DIGITAL SPOTLIGHT OF THE DAY

 
Collective Digital Studio’s Epic Meal Time crossed over from digital to TV last weekend when it debuted its companion show, Epic Meal Empire, on A+E’s FYI channel. The host, Harley Morenstein, and the EMT crew gave their digital fans a tour and trailer of the new show in a three-minute video released online. Check it out at www.cynopsis.com/#video.

See you tomorrow,
Jessica Reese  @JMarieReese
07.28.14

Roberta Caploe: Editorial Director @robertacaploe
Diane K Schwartz: Senior Vice President, Media Communications Group

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JOB OPENING: DIRECTOR, BUSINESS AFFAIR/NBC/Univ. City, CA: Handle business affairs issues for NBC programming. Un-scripted programming strongly desired. Job#16588BR APPLY HERE (7/31)

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